The potential for increased infrastructure spending is driving investor optimism about the infrastructure industry. In addition to the reopening of infrastructure activities, expected government spending we think will drive the performance of fundamentally sound infrastructure stocks Owens Corning (NYSE:OC), Louisiana-Pacific (NYSE:LPX), Apogee Enterprises (NASDAQ:APOG), Quanex (NYSE:NX), and BlueLinx (BXC). So, let’s pore over these names.With infrastructure nationwide—such as power grids, public transportation and high-speed internet access—in need of maintenance, repair and reconstruction, the industry has enjoyed heightened investor attention over the past few months with the reopening of the economy. This is evident in the Global X U.S. Infrastructure Development ETF’s (PAVE) and the iShares U.S. Infrastructure ETF’s (IFRA) 20.7% and 16.6% returns, respectively, so far this year.
Further, the industry received a boost last month when President Biden reached an agreement with a bipartisan group of U.S. senators on a $1.2 trillion infrastructure spending proposal. So, the industry should remain in focus as the Senate works to pass the bill.
Given this backdrop, we think it could be wise to bet on fundamentally sound infrastructure stocks Owens Corning (NYSE:GLW) (OC), Louisiana-Pacific Corporation (LPX), Apogee Enterprises, Inc. (APOG), Quanex Building Products Corporation (NX), and BlueLinx Holdings Inc. (BXC). They each have plenty of upside to deliver.